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Can a Company Sponsored Event Mean Liability?

As we have officially entered summer, employers will begin to offer outdoor teambuilding activities for their employees. While this is a fun practice, there also needs to be care taken when planning these kinds of events. There are many different types of events to choose from, but most companies choose something that's more physical in nature and gets people outside in the nice weather.

Whether your company event is something physical like a softball game or laid back like a company picnic, when it comes to an injury, the court will examine the same questions to determine liability whether the event was within the course of employment.

The court will consider these factors:

• If the event is held during working hours:

If the event is during normal working hours, the injured employee may be considered to be attending this event within the course of employment.

• The extent to which employees were either required or expected to attend:

If the attendance of the employee was voluntary, such as an event off company property and outside of normal working hours, the injury can't reasonably be within the scope of employment. If an employee is made to choose between the event, losing pay or using a vacation day, then it can appear that it was within the scope of their employment to attend this event and they would be entitled to workers' compensation benefits.

If they can choose between a company event or working their regular job, then it was a voluntary choice and workers' compensation benefits would not apply.

• The degree of sponsorship by your company and how much the company benefits from the event.

These factors will be looked at as well. If you want to avoid a workers’ compensation claim at a company-sponsored event, do not require attendance of your employees. If you do, you will most likely be found liable in the event of an injury.

• When the activity is planned in relation to work and the frequency of the activity:

Make sure your employees know that the event is optional even if it is during or just after work hours.

Keep these additional things in mind in relation to your company event:

• Be careful with alcohol:

You need to be extra careful with an event that is serving alcohol. Do not have an open bar as that is just asking for trouble. Make it cash or a ticket system instead and make sure to provide plenty of food. Also, stop serving alcohol well before the end of the event.

• Use outside wait staff:

Instead of company personnel serving alcohol, have the party at a restaurant or hire a catering service. This will help cut down on the risk of liability.


There are many things to consider when hosting a company-sponsored event this summer for your employees, but if you do it with care, everyone can have a great time and you won't have to worry about getting sued.

Consult with an expert on Workers' Comp. Talk to a rep at Spooner Inc. today!

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